Saturday, September 26

Indonesia’s inflation accelerates on fuel prices

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JAKARTA: Indonesia’s inflation accelerated to 6.79 per cent in April spurred by higher fuel costs after global oil prices rebounded, official data showed yesterday.

The year-on-year consumer price index rose from 6.38 per cent in March, the statistics agency said.

At the start of the year, Southeast Asia’s biggest economy almost completely abolished a decades-old fuel subsidy regime – which had proven to be extremely costly – and let prices float with the market.

The decision came at a time when oil prices had fallen dramatically, and prompted steep drops in the price of fuel and a slowdown in inflation. However, global oil prices rebounded by about 20 per cent in April owing to several factors, including concerns about unrest in Yemen, the weakening dollar and fewer US rigs in operation. — AFP